Frontier Airlines announced today that it has filed for Chapter 11 bankruptcy protection.
According to to the Economic Times
The company said it was forced to file for bankruptcy protection in a New York court “following an unexpected attempt by its principal credit card processor to substantially increase a ‘holdback’ of customer receipts, which threatened to severely impact Frontier’s liquidity.”
This time the national credit crunch seems to be crunching Frontier’s cash availability.
As we all know by now, airlines in Chapter 11 seem to run without a glitch. Frontier Airlines executives say
it would continue to operate without disruption during the bankruptcy proceedings, offering its full schedule of flights, honoring reservations and paying employees and suppliers.
